by Jamie Holmes
In what was an unusually volatile week for bitcoin, China spooked the markets, with BTC-USD hitting a fresh low of $880. However, the crucial support level at $890.65 has held, suggesting the uptrend remains in place. Resistance will be encountered at $944.20 and a break of this level should open up another shot at $1000. On the other hand, a break below $890 will see the market test supports at $866 and $800.
It looks as if a fractal resistance will be formed at $1139.89 on the weekly timeframe if this high remains unchallenged over the next two weeks. On the daily timeframe, shown below, a fractal support looks to form at $812.28, which will provide renewed upward momentum, as BTC-USD will be closer to the support at $812.28 than the new fractal resistance at $1139.89.
Also, notice the bullish Hammer candlestick formed on January 7, suggesting the preceding downward move is over. However, further strength is required for confirmation, so we look for a close higher than the January 8 high at $941.81 to increase the likelihood of further gains for BTC-USD.
The People’s Bank of China intervened heavy-handedly in the Bitcoin market, warning the largest exchanges on the mainland about complying with regulations and reasserting that the Yuan is the only currency to be used. Chinese exchanges have been notified of a restriction with regards what they can say for marketing bitcoin, with no reference to a depreciating Yuan and using Bitcoin as a hedge allowed.
The significant rise then fall of bitcoin may have had some holders on edge, but Bitcoiners may have something to look forward to in March 2017. The SEC will make a final decision on the Winklevoss twins’ bitcoin ETF, which would open up the cryptocurrency to institutional investors, increase demand for the digital asset significantly, and hence, is anticipated to appreciate BTC-USD.
This week’s review is compiled from contributions by Alexander Lielacher, Evan Sixtin, Farzana Begum, Jamie Holmes, Joseph Young, Michael Scott and Nigel Dollentas.
Bobby Lee, CEO of BTCC, the world’s oldest and largest bitcoin exchange, has stated in an interview that Bitcoin has created a new asset class. The digital currency successfully eliminated the necessity of fiat and the exponential growth of bitcoin’s user base increased the likability of a cashless society. However, the People’s Bank of China has intervened on January 6 with a warning on volatility, jawboning bitcoin markets to a floor of $880.
The Winklevoss twins are awaiting the final approval process of their bitcoin ETF, called Winklevoss Bitcoin Trust, that will come to an end in March 2017, which is anticipated to have a large impact the global bitcoin industry and ecosystem. ETF, also known as an exchange-traded fund, by definition, is a marketable security that tracks a commodity, bond, or asset. Through regulation by a stock exchange and government-supported organizations such as the SEC, ETFs ensure their legitimacy and validity.
Ethereum co-founder Vitalik Buterin outlined the philosophy behind Proof of Stake, while John Lilc, Ethereum developer, described the case that the Bitcoin network is unsustainable. Specifically, Bitcoin's energy intensity, perceived as unsustainable, but how justified are these concerns? BTCManager examines the arguments against Proof of Work, noting that progress with SegWit and Lightning Networks would help address concerns about energy intensity.
To establish a global voice for the blockchain industry, the Global Blockchain Business Council (GBBC) will connect business leaders together and highlight innovations stemming from distributed ledger technology. The new blockchain advocacy group is made possible by the coalition between Bitfury as well as multinational law firm Covington.
Those who know Elizabeth McCauley might say that she is on a career trajectory akin to the explosive rise of Bitcoin. As the Head of Global Business Development at Coinsecure, she is involved in a high-stakes movement to fuel bitcoin access in India, one of the world’s fastest growing countries. She is also a Board Member of the Bitcoin Foundation whose charge it is to standardize, protect and promote Bitcoin. BTCManager interviewed McCauley on her fascinating journey into the Bitcoin world and what is in store for 2017.
Martin Butler, Account Executive at Microsoft, announced in a December 22, 2016, post on LinkedIn plans for an aggressive rollout of new features in 2017 for Microsoft's best-selling Office 365 Software Suite, and one of those features will be advanced Bitcoin support for Excel spreadsheets. Bitcoin support will be available for Excel running under Windows 10, Android, Mac OS, and iOS, and will include Excel mobile versions as well.
If we can make payments at shops, supermarkets and for public transport using our mobile phones, why not use these devices to pay for parking, highway tolls, and car-sharing fees using dedicated in-built eWallets in our cars?; this is what in under development thanks to UBS, innogy, and ZF. Swiss bank UBS has teamed up with German energy company innogy SE and automotive technology company ZF to create blockchain-based eWallets for electric cars, allowing pay on-the-go for electric charging, parking fees, highway tolls and receive car-sharing fees.
Bitcoin’s rally has thrown up some interesting results on January 4, with altcoins surging and following Bitcoin higher with a tailcoat effect. Cryptocurrencies such as Dash, Monero, Ethereum, Ethereum Classic, Counterparty, and Factoids displayed impressive gains. However, following Bitcoin lower, altcoins have also lost a lot of value following BTC-USD’s peak at $1139.89. Nevertheless, the cryptocurrency sector as a whole remains robust, and 2017 will be an exciting year for altcoins.